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CLEVELAND CLIFFS: ASIA PACIFIC ASSETS BOUGHT BY MINRES

Cleveland OH, Jun 12

The US’ largest and oldest independent iron ore mining company Cleveland-Cliffs is exiting the Australian iron ore business, selling substantially all its loss-making Asia Pacific iron ore assets to Australian miner/services company Mineral Resources for an undisclosed price, albeit reducing the costs of closing its Aussie operations by about $US65M-$75M.Mineral Resources has made no announcement on the deal that Cleveland-Cliff says spans existing mining operations across multiple commodities. The US company does say that the deal is supported by the WA govt and that the iron ore asset sales cost cuts, including the Koolyanobbing complex in WA, are subject to Mineral Resources assuming certain obligations and Cliffs reaching settlements with other 3rd parties. The transaction is expected to close before the end Q2 18.